Discuss the Impacts of bribery in international business.
Unfair competition: Bribery distorts competition in the market. It enables companies to gain an unfair advantage over their competitors by influencing government officials, regulators, or potential customers to make decisions that are not in the best interest of the market or society.
Damage to reputation: Bribery can damage a company’s reputation, especially if it is exposed to the public. This can lead to loss of trust by customers,
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Legal consequences: Bribery is illegal in most countries, and companies that engage in it can face legal action, including fines, imprisonment, and exclusion from public contracts and tenders.
Loss of business opportunities: Companies that engage in bribery can lose out on potential business opportunities as they are unable to compete on a level playing field. This can result in reduced profits, market share, and growth potential.
Economic damage: Bribery can lead to economic damage, including loss of tax revenues, and reduced foreign investment. This can negatively affect the overall economic growth of a country, especially if corruption is widespread.
Ethical concerns: Bribery raises ethical concerns as it involves exchanging something of value for an improper or unethical action. This can compromise the integrity of business transactions and erode the trust between stakeholders, leading to long-term negative consequences.
In conclusion, bribery has significant impacts on international business, including unfair competition, damage to reputation, legal consequences, loss of business opportunities, economic damage, and ethical concerns. Companies should ensure that they have effective anti-bribery policies and procedures in place to prevent corruption and promote ethical business practices.